The dreaded move-out date arrives and the one thing on your mind is the security deposit. What happens when you don’t get the security deposit back plus the landlord sends a balance to a collection agency that reports it on your credit files.
Even though a collection agency cannot report a negative account beyond 7 years, they can still pursue you for an unpaid debt.
Overwhelming debt is stressful but should you file bankruptcy or enroll in a debt management plan. Both options can provide relief but have a different impacts on your credit scores.
If your insurance company pays a medical collection debt that’s on your credit reports, you can have the medical collection accounts removed from your credit reports under the National Consumer Assistance Plan (NCAP) initiative.
Debt settlement can hurt credit scores because having late payments are essential to settlement, creditors are motivated to settle when you have multiple lates
Medical Debt: Most debt has a statute of limitations which means at some point it becomes legally uncollectible. Debt collectors can continue to pursue payment but have no leverage.
Junk debt buyers may be engaging in phantom debt, collecting payments from consumers for debts that are nonexistent. or illegal to collect.
Medical debt collectors looking to collect on older accounts often don’t have any documentation to prove you owe the debt. It’s important to challenge medical collection accounts. If you want to pay, contact the original medical provider.
You have the right to stop the debt collector threats and stop debt collectors from calling and writing you. But that does not eliminate the debt.
When a debt collector asks you to provide proof you owe a debt, don’t. It defeats the purpose of the debt validation process.